San Francisco-based Square has been making waves in the financial industry. The company seeks to make payment methods more accessible to everyone. Although Square is most well-known for their smartphone payment methods, the company has recently become competitive in the peer-to-peer mobile payment sector with the SquareCash app.
Square Cash App
The Square Cash App is a way to send and receive payments from your family, friends, peers, and co-workers. The app is similar to Venmo, PayPal, and Apple Pay, which also allow you to send money. According to Apptopia, Square Cash has surpassed Venmo as the most downloaded financial app for smartphones. The app is available on Google Play and the Apple Store.
The market for peer-to-peer mobile payments is rapidly growing. Statista had originally estimated that over 63 million Americans would engage in peer-to-peer payments last year. The company also predicted that by the end of 2020, over 100 million Americans would engage in such transactions.
Setting Up the App
To make a Square payment, you’ll first need to setup the app. The setup process is relatively simple. After downloading the app, enter your email address or phone number. Squarecash will then send you a confirmation code. After entering the confirmation code, you’ll enter your debit card or bank account information.
After entering your financial information, you can complete your profile. In addition to adding your name, you can also create a “$Cashtag.” The $Cashtag is similar to a Twitter or Venmo handle and allows your network to identify you easily.
Once your profile is complete, you have the option to enter additional financial information. It’s possible to make a Square payment with a credit card, but the app requires that you have a debit card or bank account on file. You can add as many cards as you’d like.
Paying Within the App
After registering, you’ll be able to begin sending and receiving payments from the app. The app features a very large green screen and a jumbo number pad. At the bottom of the number pad, you’ll see options to “Request” and “Pay.” Enter the amount of money you’d like, and then select either the Request or the Pay button.
From there, you’ll be taken to another screen that allows you to select the user you’d like to perform the transaction with. Confirm the transaction, and you’ll be good to go. The other user will receive a notification about the transaction.
If a payment is made by mistake, it’s easy for you to refund the person that made the payment. This is a feature that is not seen in other peer-to-peer mobile payment applications. For example, if a payment is made by mistake on Venmo, you’ll need to deposit the initial payment and then send a new payment of the same amount.
However, you cannot rescind a payment in Square. This is common for all peer-to-peer apps. So if you make a payment by mistake, you’ll need to either ask the person to refund your payment or submit a request for a new payment from them.
How Does Square Compare to Other Apps?
A noticeable difference from Venmo is that the Square app does not feature a social media feed. Venmo markets toward a younger generation by featuring a feed of payments that their friends have made. The Square Cash app does not feature this, allowing users to send and receive money simply. While it’s a matter of personal preference, the social-feed free Cash app is preferred by many.
Another noticeable difference from other peer-to-peer apps is that the Square Cash app does not allow you to split a bill among your party. Other apps allow you to enter the bill’s total and the handle of the users that will pay. The app will then automatically do the math and evenly split the bill, requesting money from each user. The Square Cash app does not offer this, so you’ll have to do the calculations on your own.
One thing that does set Square Cash apart, however, is the fact that you can send or receive cash from anyone, including users who do not have the Square Cash app. Other peer-to-peer payments are limited to within their app. For example, if you’re looking to split a restaurant bill among your party with another app, everyone will have to download the app before proceeding.
The Square app also offers users a Cash Card. This is a virtual credit card that allows you to make purchases with your account balance, similar to a feature offered by PayPal. This is an optional feature for Square users and prevents them from having to transfer their account balance to and from their bank account. The Cash Card operates just like any other credit card.
Lastly, Square allows their users to enroll in “Auto Cash Out.” Many peer-to-peer payment apps require users to log in and manually export their account balance whenever they receive funds. But Square users can set their account so that funds are automatically sent to their bank account whenever a new transaction occurs. Additionally, users can opt for instant bank account deposits for a 1% fee.
The Ins and Outs of the App
If you use a debit card or bank account for a transaction, Square Cash will not charge you a transaction fee. However, if you use a credit card for the transaction, you’ll be subject to a 3% fee. This is fairly standard for peer-to-peer payment applications. Square’s Cash Card is not subject to the 3% transaction fee.
The Square Cash app has a fairly low limit for weekly transactions. The app only allows users to send $250 each week, although users are able to increase tenfold by providing additional information to verify their identity. Access to a $2,500 weekly limit is dependent on providing your
- Full Name
- Date of Birth
- Last Four Digits of your Social Security Number
As a whole, Square is seen as a secure way to make payments. The app allows users to set up a fingerprint option as an added security measure.
Square Cash also offers a referral program to encourage both you and your friends to join. If you send a friend an invitation to Square Cash and they end up joining, you both will receive $5 cash.
Over the past year, cryptocurrencies have gained an incredible amount of popularity. Squarecash beat its competitors to the punch in allowing their users to purchase cryptocurrencies. In November, some users opened their Square Cash app and were pleasantly surprised to see that they could now purchase Bitcoin with the app.
A spokesperson for Squarecash indicated that users had previously indicated they would like to purchase cryptocurrencies with the app. The spokesperson admitted that the company would continually explore how to improve this process, which was initially introduced to a handful of users.
Square believes that the ability to purchase cryptocurrency holdings will encourage participation in the global financial system. Square CEO Jack Dorsey has called cryptocurrencies “the next big unlock.” He also admitted that allowing users to invest in cryptocurrencies would be a great way to attract a younger user base.
When it was first introduced, Squarecash only allowed users to buy, sell, and hold Bitcoin. In the world of cryptocurrency, this is considered to be extremely limited. But the ease in which users can purchase BitCoin should not be overlooked.
Additionally, it’s reasonable to believe that Square will continually look at expanding its cryptocurrency abilities. They could soon offer the chance to invest in other cryptocurrencies, such as Ethereum, LiteCoin, or Ripple. They could also eventually allow users to send and receive payments, just as users currently do with cash.
Square Cash Customer Service
If you run into problems while using the app, you can contact Square Cash Customer Service. A link to the company’s support team can be found within the app. When selected, users are presented with a Frequently Asked Questions page. Questions on the page include
- How does Cash work?
- How do I get my money?
- Can I get funds sent to my bank account automatically?
- When can I cancel a payment?
- Who can use Square Cash?
- Is Cash safe?
If your question is not contained within these descriptions, you then have the option to contact Square support. Once on that page, you’ll be presented with a General Topics page. This page serves as a Users’ Guide for Squarecash, with much more in-depth questions and answers.
Square also makes it easy to solve specific any problems you’ve had with a specific transaction. When you enter the General Topics page, Square will list your most recent transactions and ask which transaction you need help with.
You can access Square Cash Customer Service from your internet browser, although you’ll need to confirm your identity before being able to continue. Square has also provided an article regarding how to contact customer service.